This is because Microsoft doesn't seem to want Windows developers to use VS Code. They want to keep them locked into Visual Studio and Windows Azure, which is why the C# plugin is one of the worst from all language plugins in Code.
That's a pretty strange implication. I just tried opening up a .NET Core application in VS Code developed exclusively in Visual Studio, and it fired right up. Now I certainly wouldn't say that the debugging experience is as good as VS, but nobody should expect it to be. VS Code isn't supposed to be a replacement for VS, although it can certainly hold it's own. And it's free.
Yes, but it has a very significant licensing restriction that prevents it from being used to develop commercial software. VS Code has no such restriction.
A little oversimplified - Visual Studio Community can be used to develop commercial software, with restrictions to (summarizing) 5 conccurrent users in non-enterprise organizations. https://visualstudio.microsoft.com/license-terms/mlt031819/